Analyze a company’s (Netflix) competitive strategy using theoretical tools learned.

Netflix’s competitive strategy can be analyzed using the five forces framework. First, there is a high threat of rivalry among competitors in the streaming industry as Netflix has been facing increased competition from other players such as Disney+, Apple TV and Amazon Prime Video. Second, buyers have strong bargaining power due to the availability of these alternate services which gives them more choice and cheaper prices. Third, suppliers are not able to exert their own power due to Netflix’s large market share and ability to negotiate lower prices with suppliers. Fourth, there is a high threat of new entrants into the market due to minimal barriers to entry such as content acquisition costs and technological capabilities. Finally, substitute products are also available (e.g., cable TV) which may cause customers to switch away from streaming services if they become too expensive or if offerings become less attractive than alternatives offered on cable TV networks.